When you’ve been injured in a Texas car accident, your first step in securing financial compensation is to file an insurance claim. Although insurance policies are in place to cover medical bills, lost wages, property damage, and other losses arising from a collision, collecting the money you’re entitled to isn’t always straightforward. If you’re not outright denied, the insurer may make a lowball insurance settlement offer and refuse to negotiate further.
At the Villarreal & Begum, LAW GUNS, we’ve helped many clients in your situation. In this guide, we’ll outline the steps you should take if an insurance company won’t budge on a low offer, and how an experienced Texas personal injury lawyer can help.
Why Do Insurance Companies Offer Low Settlements?
Insurance companies are businesses, and their goal is to protect their bottom line. This means that offering a lower payout than what you deserve is a common tactic to minimize expenses. By understanding their motives, you can better prepare to counter these tactics.
Here are some of the key reasons why insurer stick to lowball insurance settlement offers:
- Many claimants either aren’t familiar with their rights or don’t know the full value of their personal injury claim. This puts the insurance company in a stronger position to offer less.
- The longer the process drags on, the more likely some claimants are to accept a lower amount just to resolve the matter quickly. This tactic is especially effective when the accident victim can’t work and their medical bills and out-of-pocket expenses mount steadily.
- They’re downplaying your damages. Insurers may argue that your accident injuries or property damage aren’t as severe as claimed, reducing the perceived value of your case.
- Insurers know that financial stress can make claimants more likely to accept the first offer they receive, even if it’s inadequate.
So How Do You Respond to a Lowball Settlement Offer?
Once you know why auto insurance companies make these substandard offers, you can better counter their tactics. Below is an overview of recommended next steps when you receive any kind of initial settlement offer.
Review the Proposed Settlement Carefully
When you receive a personal injury settlement offer, don’t rush to accept it, even if you’re eager to close the case. Take the time to analyze the offer thoroughly and determine whether it covers your actual expenses and losses.
- Check Against Your Costs: Compare the settlement amount to your medical costs, property damage estimates, lost wages, and other related expenses. Don’t forget to factor in additional costs like prescription medications, therapy, or ongoing care.
- Read the Fine Print: Confirm that the offer doesn’t include clauses that could limit your ability to seek further compensation in the future. Look for language that releases the insurer from additional liability.
- Evaluate Future Needs: Consider ongoing or future expenses related to your claim, such as rehabilitation costs, long-term impacts on your earning capacity, or potential future treatments. These costs can add up over time and should be included in your claim.
- Assess Emotional and Non-Economic Damages: While harder to quantify, the emotional toll of an injury or property loss should be included. Pain and suffering, emotional distress, mental anguish, and loss of enjoyment are valid components of a claim.
Having a detailed understanding of your accident-related expenses means you’re better equipped to push back on an inadequate offer. A thorough review also provides a clear baseline for settlement negotiations.
Gather Evidence to Support Your Claim
You must present strong evidence to support your claim. Insurance companies are less likely to hold firm on a low offer when confronted with solid documentation that clearly outlines the scope of your damages. Be sure to collect the following:
- Medical Records: Include diagnoses, medical treatment plans, and invoices. Documentation from specialists or therapists can further substantiate the severity of your accident injuries.
- Property Damage Estimates: Get repair or replacement estimates from credible professionals, and include receipts or invoices for any temporary repairs you’ve already made.
- Accident Reports: These reports provide an unbiased account of what happened and may include statements from law enforcement or other authorities.
- Photographs and Videos: Visual evidence can clearly illustrate the extent of your damages or injuries, making your case a lot more compelling.
- Witness Statements: Eyewitness accounts add credibility to your claim and may counter any attempts by the insurer to downplay your situation.
- Expert Opinions: If applicable, expert testimony, such as from an accident reconstruction specialist or medical professional, can validate your claims and make your argument more persuasive.
Organize this information in a clear and concise manner to make your position stronger during negotiations. Providing detailed documentation shows that you mean business and weakens the insurer’s ability to argue against your claim.
Communicate Strategically
When responding to a low settlement offer, how you communicate with the insurance adjuster matters as much as what you say. Best practices include:
- Stay Calm and Polite: Avoid letting frustration show, as emotional responses can weaken your position. Remaining calm signals confidence and control.
- Be Specific: Use evidence to explain why the offer is insufficient. Reference specific expenses, medical reports, or estimates to back up your argument.
- Ask for Clarification: Request a detailed breakdown of how the insurer calculated the offer. This can highlight areas where the settlement falls short and give you opportunities to challenge the rationale.
- Avoid Giving Too Much Information: Stick to facts and avoid speculation that could undermine your case. Overexplaining or providing unnecessary details can weaken your position.
- Document Every Interaction: Keep detailed records of all conversations and correspondence with the insurer. This ensures accountability and provides a paper trail if disputes arise.
Professional communication from a personal injury attorney shows the insurer you’re serious about securing a fair outcome. It also demonstrates that you won’t be easily swayed by low offers or evasive tactics.
Negotiate Firmly
Negotiation is a back-and-forth process that requires patience, strategy, and persistence. Rarely will the first counteroffer resolve the situation, so be prepared to advocate for yourself. Steps to counter a lowball insurance settlement offer include:
- Determine Your Minimum Amount: Decide on the lowest amount you’re willing to accept before entering discussions. Having this figure in mind ensures you don’t settle for less than you deserve.
- Submit a Counteroffer: Provide a detailed demand letter that outlines your desired compensation and the evidence supporting it. Include a breakdown of costs and explain why the initial offer falls short.
- Highlight the Insurer’s Responsibility: Emphasize their obligation to provide a fair settlement under the terms of their policy. Point out any inconsistencies in their evaluation.
- Be Willing to Compromise: While you shouldn’t settle for less than you deserve, flexibility can help you close the accident claim more quickly. Aim for a balance between your ideal outcome and a reasonable resolution.
Negotiation is as much about strategy as it is about persistence. Present your case confidently, and don’t be afraid to stand your ground.
Call a Texas Personal Injury Lawyer
Sometimes, an insurance company won’t budge despite your best efforts. This is one of the many reasons why you should hire a Texas car accident attorney to help you pursue your claim. When you work with a legal professional, you gain the following advantages:
- A skilled attorney knows how the claims process works inside and out. They understand the roadblocks insurers often put up and can counter them more easily. This level of expertise ensures your claim is handled correctly from the onset.
- When you have a lawyer representing you, insurers know they’re dealing with someone who won’t settle for less than what’s fair. Auto accident attorneys bring years of negotiation experience, which can result in significantly larger settlements.
- The presence of a lawyer signals to the insurance company that you’re serious about your claim. This often leads to quicker resolutions and better offers because insurers prefer to avoid potential litigation.
- A lawyer makes sure that no detail is overlooked. From uncovering hidden damages to countering weak arguments from claims adjusters, they’ll use their experience and legal acumen to get the best results in your case.
Let’s face it – handling a claim on your own can be too much, especially when you’re coping with catastrophic injuries. Many people hesitate to hire a lawyer because of cost concerns, but here’s the good news: most personal injury lawyers work on a contingency fee basis. This means they only get paid when you do. In other words, there’s little risk but plenty of potential reward.
Don’t let a lowball offer dictate your recovery. Consulting a lawyer could be the key to turning frustration into a reasonable settlement. Take that step today, and give your claim the representation it deserves.
Stay Persistent
Getting fair compensation rarely (if ever) happens quickly. As we explained earlier, insurance companies count on claimants growing tired of the waiting and back-and-forth and accepting less than they need. Staying persistent is key to overcoming this challenge.
Here’s how you can maintain focus:
- Understand that negotiations can take weeks or even months. Patience is essential to achieving the outcome you need.
- Keep all your documents, correspondence, and evidence in one place for easy reference. Organization ensures you’re prepared for every stage of the process.
- Remember why you’re pursuing a fair settlement, whether it’s covering medical care expenses, repairing property, or achieving peace of mind. Visualizing the outcome can keep you motivated.
Avoid Common Mistakes
Even a strong claim can be undermined by simple missteps. Avoid these common pitfalls to keep your negotiations on track:
- Accepting the First Offer: Insurers rarely make their best offer upfront. Working with a car accident lawyer, push back and advocate for more.
- Providing Inconsistent Statements: Stick to the facts and ensure your account of events remains consistent across all interactions. An experienced attorney can keep you on track and prevent insurance adjusters from tripping you up.
- Signing Too Soon: Don’t sign any documents without fully understanding their contents and implications. Once you’ve signed, you may lose the ability to seek further compensation.
- Skipping Professional Advice: Don’t hesitate to seek help, especially if your claim has a higher dollar value. These are the cases that may need to be resolved through litigation, and you’ll definitely need a lawyer if that happens.
By steering clear of these mistakes, you can protect the value of your claim and maintain control of the negotiation process.
Questions? Talk to a Texas Personal Injury Lawyer Today
Receiving a lowball insurance settlement offer is frustrating, but it doesn’t have to define the outcome of your claim. By understanding the tactics insurers use, gathering strong evidence, and approaching negotiations strategically, you can push back and secure a fair resolution. Working with a lawyer helps you take control of the proceedings and puts you in a much better position to achieve the compensation you’re entitled to.
Don’t let a low settlement offer limit your recovery. To take legal action, call the Villarreal & Begum, LAW GUNS to schedule your free initial consultation. We will listen to your story, provide honest advice, and give your claim the skilled and assertive representation it deserves. For more information, please call our law firm at (210) 800-0000 or contact us online today.
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Alex has tried over 50 trials to verdict and tried or settled over five hundred million dollars in cases. Alexander Begum is a founding shareholder of the Villareal & Begum Law Firm. Born and raised in Texas.